SOME  *  FACTORS 

BEARING  ON  THE  WAGE  QUESTION 

IN  THE  CLIFTON-MORENCI-METCALF 

=  DISTRICT  = 


BY 

Norman  Carmichael 


Clifton,  Arizona 
July  1917 


THE  WAGE  QUESTION  IN  THE 
CLIFTON-MORENCI-METCALF  DISTRICT 


To  Employees  of  the  Arizona  Copper  Company,  Ltd., 
and  the  Public: 

During  times  of  stress  such  as  this  district  is 
passing  through  at  the  present  time,  many  misstate- 
ments,  some  of  them  made  wilfully  for  the  purpose 
of  creating  erroneous  impressions  on  the  public  mind 
and  others  made  unwittingly  as  a  result  of  misinfor- 
mation, find  a  ready  circulation  and  prevent  a  prop- 
er conception  of  true  conditions  in  relation  to  ques- 
tions at  issue. 

This  is  written  for  the  purpose  of  clearing  up 
some  of  the  misunderstanding  which  I  believe  exists, 
and  I  wish  to  put  a  few  facts  before  you  in  order  that 
those  who  desire  to  form  a  well-balanced  opinion  in 
their  own  minds  regarding  the  present  controversy 
may  have  a  correct  basis  to  start  from. 

There  appears  to  be  a  deeply  grounded  opinion 
on  the  part  of  a  certain  section  of  the  mine  workers 
that  a  uniform  scale  of  wages  should  obtain  in  all 
mining  camps  of  this  state  and  our  employees  have 
demanded  a  scale  which  is  in  effect  in  the  Miami 
district. 

It  is,  I  think,  safe  to  say  that  in  no  industry  today 
does  a  uniform  scale  of  wages  exist,  for  a  very  good 
reason — that  conditions  vary  so  much  in  different 
places  what  would  be  fair  in  the  case  of  one  concern 
or  locality  would  be  totally  unfair  in  the  case  of 
another. 


Page  Two 

I  would  like  to  point  out  a  few  reasons  why  the 
application  of  what  is  known  as  the  Miami  scale 
would  not  be  fair  to  the  operators  in  this  district,  and 
would  not  be  of  permanent  benefit  to  the  community. 

Operations  in  the  Miami  district  are  of  very  re- 
cent inception.  The  Miami  Copper  Company  com- 
menced production  in  1911,  while  the  Inspiration 
Company  began  producing  only  last  year.  The  prop- 
erties of  these  two  companies  adjoin  and  may  be  con- 
sidered as  one  immense  ore  deposit.  Both  properties 
were  fully  developed  before  stoping  operations  were 
commenced,  and  the  owners  had  accurate  knowledge 
of  the  size,  shape  and  copper  contents  of  this  miner- 
alized area,  with  which  information  they  were  en- 
abled to  lay  their  plans  for  mining  the  ore  in  the  most 
economical  manner. 

The  science  of  mining  large  ore  bodies  has  ad- 
vanced very  rapidly  within  the  past  few  years  and 
these  companies  had  the  opportunity  of  taking  ad- 
vantage of  the  very  latest  methods  and  of  applying 
them  to  an  unbroken  area,  while  the  highest  talent 
has  been  freely  used  in  solving  the  various  problems 
connected  with  the  mining  and  treatment  of  the  ores, 
involving  years  of  preparation  and  the  expenditure 
of  vast  sums  of  money  in  order  that  operating  labor 
might  be  saved  and  other  expenses  reduced  to  a  min- 
imum. A  comparison  between  the  conditions  found 
in  the  Miami  district  with  those  obtaining  in  the  Clif- 
ton-Morenci-Metcalf  district  is  opportune  and  should 
be  taken  into  consideration  when  discussing  the  wage 
question  as  affecting  these  respective  districts. 

The  mines  at  Morenci  and  Metcalf  have  been 
worked  as  long  as  any  in  the  state,  having  been  open- 
ed in  the  early  seventies  or  nearly  fifty  years  ago ;  in 
fact,  it  might  truthfully  be  said  that  copper  mining 
in  Arizona  had  its  beginning  in  this  district.  These 
mines  wrere  first  worked  for  their  high  grade  oxid- 
dized  ores  which  were  smelted  direct;  later  larger 
bodies  of  porphyry  ores  containing  enriched  veins  of 
sulphide  ore  were  discovered  and  the  mining  out  of 


Page  Three 


these  higher  grade  ores  was  commenced,  using  the 
most  approved  method  of  those  days,  viz :  the  square 
set  system,  but  involving  the  use  of  enormous  quan- 
tities of  timber.  The  more  recently  developed  meth- 
ods of  mining  have  been  introduced  and  have  re- 
placed the  older  method  as  far  as  they  could  be  ap- 
plied, but  their  application  has  been  restricted  on 
account  of  the  fact  that  the  older  workings  interfered 
with  any  broad  application  such  as  is  possible  in  the 
case  of  ore  bodies  laid  out  in  the  new  before  mining 
operations  are  commenced.  The  remaining  ore  in 
the  case  of  our  older  mines  lies  in  comparatively 
small  and  detached  masses,  scattered  irregularly 
throughout  a  considerable  area,  honeycombed  with 
old  stopes,  involving  an  intricate  system  of  mine 
workings  to  reach  them  and  for  transporting  the 
ore,  and  the  use  of  a  large  amount  of  labor  split  up 
into  many  small  units. 

Similarly  it  can  be  readily  shown  that  the  devel- 
opment of  these  scattered  ore  bodies  involves  vastly 
greater  expense  than  is  required  in  the  case  of  one 
ore  body  which  is  self-contained. 

In  the  case  of  Miami,  two  mining  companies  pro- 
duce an  aggregate  of  about  24,000  tons  of  ore  per 
day,  while  in  tnis  district  the  three  companies  pro- 
duce but  7000  tons  per  day.  The  mines  in  the  Miami 
district  are  served  with  a  standard  gauge  railroad 
delivering  supplies  to  all  their  plants ;  in  this  district 
the  mines  are  situated  in  wilder  and  more  inaccessi- 
ble locations  and  the  three  companies  have  each  a 
system  of  narrow  gauge  railroads  aggregating  35 
miles  in  length,  operating  over  heavy  grades,  involv- 
ing the  transfer  from  standard  to  narrow  gauge 
and  in  every  case  a  further  transfer  from  nar- 
row gauge  to  baby  gauge,  with  perhaps  a  haul  over 
inclines  in  order  to  get  their  supplies  to  their  mines 
and  works. 

Comparing  the  smaller  of  the  mining  companies 
in  the  Miami  district  with  the  larger  of  the  three  com- 
panies operating  in  this  district,  both  of  which  pro- 


Page  Four 


duce  about  the  same  amount  of  ore  and  make  about 
the  same  amount  of  copper  per  month,  it  may  be  apt- 
ly pointed  out  that  in  the  case  of  the  Miami  Company 
there  is  but  one  mining  organization  under  one  staff, 
superintendent,  foreman,  and  shift  bosses,  Their 
mining  operations,  while  carried  on  on  a  comprehen- 
sive scale,  are  confined  within  a  very  limited  area, 
the  ore  drops  by  gravity  from  the  stopes  to  the  haul- 
age levels  and  by  a  comparatively  short  haul  by  elec- 
tric motors  is  delivered  to  a  central  shaft  through 
which  it  is  hoisted  direct  to  the  concentrator. 

In  our  case  we  work  twelve  separate  mines  scat- 
tered over  a  district  four  miles  long  by  two  miles 
wide,  each  with  its  own  organization  and  connected 
together  by  an  extensive  system  of  transportation 
levels  and  tunnels  many  miles  in  length,  partly  oper- 
ated by  electric  motor,  partly  by  steam  and  partly  by 
mule  power,  requiring  the  use  of  four  shafts,  four  in- 
clines and  two  aerial  tramways  with  all  the  necessary 
hoisting  engines  and  involving  a  heavy  cost  for  main- 
tenance, as  also  for  operation. 

In  addition  to  all  this  we  have  a  system  of  sur- 
face workings,  operated  by  from  200  to  300  leasers, 
scattered  over  the  hills,  producing  ore  in  small  quan- 
tities at  numerous  points  from  which  it  has  to  be  got- 
ten and  packed  by  burros  to  points  on  our  transporta- 
tion system,  all  of  which  cost  must  be  absorbed  in  the 
"General  Mine  Expense." 

In  the  former  case,  their  ore  is  treated  by  one 
concentrator  and  in  our  case  by  two,  each  with  its 
attendant  staffs  and  tailings  disposal  plants. 

In  the  case  of  Miami,  two  sampling  plants  suf- 
fice ;  in  our  case  the  same  work  requires  five ;  they 
have  one  assay  office,  we  have  five,  not  including  the 
one  in  our  smelting  department.  Similarly,  where 
one  machine  shop  can  take  care  of  the  work  of  the 
mine  and  concentrator,  we  require  three ;  and  similar 
disparity  will  be  found  to  hold  good  in  the  case  of 
mine  offices,  time  keeping  staffs,  supply  warehouses, 
blacksmith  shops,  air  compressor  plants,  mine 


Page  Five 


change  houses  and  sundry  other  indispensable 
plants. 

It  is  true  that  in  limited-  areas  of  the  larger 
mines  in  this  district  costs  approximating  those  ob- 
tained in  the  Miami  mines  can  be  attained,  but  these 
areas  are  very  limited  and  can  in  no  way  be  taken  as 
a  criterion  of  the  general  cost  of  mining  in  this  dis- 
trict, and  what  is  true  of  the  Arizona  Copper  Com- 
pany is  equally  true,  and  to  an  even  greater  extent,  in 
the  case  of  the  two  other  companies  operating  here. 

These  conditions  are  reflected  in  the  tonnage 
output  per  man  in  each  of  the  two  districts,  thus  in 
the  month  of  May,  1917,  there  were  mined  by  the  In- 
spiration and  the  Miami  Companies  a  total  of  777,220 
tons  of  ore,  or  25,071  tons  per  day.  The  total  num- 
ber of  men  employed  in  their  mining  departments  by 
these  two  companies  was  1875,  or  a  yield  of  13.4 
tons  per  man  per  day. 

In  the  Clifton-Morenci-Metcalf  district,  the  Ar- 
izona, Phelps-Dodge  and  Shannon  Companies  to- 
gether mine  6,710  tons  per  day,  and  employ  in  their 
mining  operations  3730  men,  equivalent  to  a  yield  of 
1.8  tons  of  ore  per  man  per  day. 

Making  further  comparison  on  the  basis  of  cop- 
per produced,  the  Inspiration  and  Miami  Copper 
Companies  employed  a  total  of  3748  men  in  all  their 
mining,  concentrating  and  smelting  operations  (In- 
ternational Smelter)  for  the  month  of  May,  and  pro- 
duced a  total  of  17,187,592  Ibs.  of  copper,  or  a  yield 
per  man  per  day  of  147  Ibs. 

The  three  companies  operating  in  the  Clifton- 
Morenci-Metcalf  district  in  their  total  mining,  con- 
centrating and  smelting  operations  employ  5,197 
men  and  produce  7,952,000  Ibs.  of  copper  per  month, 
equivalent  to  a  yield  of  51  Ibs.  of  copper  per  man  per 
day. 

While  it  is  true  that  the  above  difference  in  the 
yield  per  man  is  essentially  due  to  the  different  con- 
ditions obtaining  in  the  two  districts  another  factor 
comes  into  play,  for  it  is  also  a  fact  that  mining  labor 


Page  Six 


in  this  district  is  not  equal  in  efficiency  to  the  labor 
in  other  districts,  nor  are  our  miners  as  efficient  as 
they  were  a  few  years  ago. 

An  extract  from  the  records  of  one  of  the  oper- 
ating companies  may  be  given  as  illustrative  of  this 
unfortunate  circumstance. 

In  the  mine  in  question  some  600  men  are  em- 
ployed and  while  no  change  has  been  made  in  mining 
methods  used  which  would  account  for  any  diminu- 
tion of  the  output  per  man,  the  following  figures 
show  the  facts : 

Tons  Per  Man  Average  Wage 
Per  Shift  Per  Shift 

1914  2.52  $2.30 

1915  2.60  2.34 

1916  2.22  3.72 

1917  2.18  4.12 

Thus  while  wages  have  steadily  and  rapidly  ad- 
vanced during  the  past  four  years,  the  average  output 
per  man  has  steadily  declined. 

During  1915  many  of  our  best  miners  left  the 
district  and  the  companies  here  are  handicapped  by 
the  necessity  of  using  a  large  number  of  men  some  of 
whom  are  not  physically  able  and  others  who  are  not 
mentally  disposed  to  turn  out  an  average  day's  work, 
and  while  there  are  many  employees  in  our  mines  to 
whom  the  above  remark  does  not  apply,  inquiry 
amongst  the  various  foremen  and  shift  bosses  in 
charge  of  the  operations  in  the  mines  will  corrobor- 
ate this  statement. 

The  attitude  of  a  certain  important  section  of 
the  mine  employees  towards  their  superior  officers 
has  also  been  anything  but  satisfactory  for  some  time 
past,  the  deliberate  opposition  shown  to  any  method 
introduced  for  the  purpose  of  increasing  efficiency, 
the  spirit  of  insubordination  and  indifference  so  fre- 
quently shown,  and  the  lack  of  cooperation  and  loy- 
alty, are  factors  not  conducive  to  the  harmony  and 
good  feeling  which  should  exist  and  unless  the  com- 


Page  Seven 


panies  can  be  assured  of  better  esprit  de  corps  and  a 
heartier  cooperation  with  them  amongst  the  employ- 
ees there  is  little  inducement  to  reopen  the  mines. 

I  would  like  to  call  particular  attention  to  the  to- 
tal number  of  men  employed  by  the  two  large  com- 
panies operating  in  the  Miami  district,  viz:  3748, 
while  the  total  number  employed  by  the  three  com- 
panies operating  in  this  district  is  5197,  although  the 
Clifton-Morenci  Companies  produce  less  than  one- 
half  the  quantity  of  copper  produced  by  the  Miami 
companies. 

The  result  of  forcing  a  wage  scale  higher  than 
the  one  now  in  effect  upon  this  district  would  neces- 
sarily be  followed  by  a  large  reduction  in  the  number 
of  men  employed,  the  curtailment  of  operations,  and 
the  working  of  such  properties  only  as  could  stand 
the  greatly  increased  expense.  The  small  mines  of 
the  large  companies  would  be  closed  down,  except 
during  periods  when  copper  sells  at  a  figure  higher 
than  its  average  price,  while  the  small  operator  could 
not  exist,  a  condition  which  would  not  bring  prosper- 
ity to  this  community. 

Only  so  lately  as  March,  1916,  the  employers 
and  employees  in  this  district  entered  into  an  agree- 
ment with  respect  to  wages  that  should  be  paid  in 
this  district,  with  copper  selling  at  different  prices. 
The  wages  agreed  upon  involved  substantial  increas- 
es over  rates  previously  in  effect.  Had  this  agree- 
ment provided  a  fixed  rate  of  wages  for  different 
classes  of  work,  irrespective  of  the  price  at  which 
copper  sold,  there  might  be  justification  for  the  em- 
ployers wishing  to  reopen  the  question  at  the  present 
time,  and  unforeseen  circumstances  could  very  apt- 
ly be  used  as  an  argument  in  their  favor,  but  the  case 
is  quite  different;  the  scale  agreed  upon  was  a  mov- 
able one  and  just  as  binding  upon  the  companies  and 
employees  at  30c  copper  as  at  13c  copper,  and  while 
the  lower  range  of  wages  has  not  been  experienced 
since  the  agreement  was  entered  into,  and  notwith- 
standing the  fact  that  our  employees  are  enjoying  a 


Page  Eight 

higher  rate  of  wages  than  received  at  any  previous 
period  in  the  history  of  this  camp,  they  have  deemed 
it  an  opportune  time  to  repudiate  their  agreement  in 
an  endeavor  to  force  upon  the  companies  a  still  high- 
er scale  and  one  which  the  companies  maintain 
would  be  unfair  to  them. 

The  present  high  cost  of  living  is  given  as  a  rea- 
son for  the  demand  for  this  superwage.  It  cannot  be 
argued  that  a  wage  scale  which  slides  with  the  price 
of  the  product  contemplates  a  stationary  cost  of  liv- 
ing, that  the  increased  wages  will  be  all  profit,  for  it 
is  a  well  known  fact  that  when  one  important  and 
widely  produced  commodity  such  as  copper  goes  to 
abnormally  high  prices,  the  cause  for  such  a  condi- 
tion usually  affects  other  commodities  in  a  similar 
manner  and  the  result  is  a  general  increase  in  the 
cost  of  living,  hence  this  very  condition  is  taken  care 
of  by  the  sliding  scale. 

I  have  gone  into  this  question  quite  carefully 
with  a  serious  desire  to  obtain  a  correct  idea  as  to 
what  this  increased  cost  of  living  amounts  to,  as  af- 
fecting the  people  generally. 

It  is  true  that  owing  to  the  war  the  cost  of  the 
necessities  of  life  has  gone  up  and  that  certain  luxu- 
ries are  unobtainable,  but  just  to  what  extent  this  has 
affected  the  cost  of  living  very  few  have  a  well  de- 
fined idea.  It  is  a  fact  that  the  price  of  flour  has  ad- 
vanced 75  per  cent  since  the  beginning  of  last  year, 
but  people  do  not  live  on  flour  alone  and  to  an  ordi- 
nary family  of  four  or  five  persons  this  great  increase 
in  cost  will  probably  not  mean  more  than  $2  or  $3  per 
month.  Many  other  staple  commodities  have  ad- 
vanced but  slightly  and  in  order  to  know  what  the 
average  increase  has  been  one  must  take  into  account 
the  various  items  which  go  to  make  up  the  monthly 
household  bills. 

The  following  bill  of  goods  has  been  made  up 
with  the  object  of  showing  what  change  in  prices 
has  occurred  during  the  past  two  years  in  the  case  of 
staple  articles  commonly  used  in  any  ordinary  house- 
hold. 


Page    Nine 


The  total  amount  of  the  bill,  which  for  the  year 
1917  sums  $100.00  is  a  purely  arbitrary  figure,  chos- 
en for  the  purpose  of  making  easy  comparison,  and 
in  no  sense  is  to  be  taken  as  representing  a  month's 
requirements  for  an  ordinary  family. 

The  prices  are  taken  from  actual  charge  slips 
and  in  every  case  can  be  verified. 

BILL  OF  GOODS 


« 

July 

Feb. 

June 

1 

PfKTQ. 

915 

1916 

1917 

iviJCjij  : 
00  Lbs.  Flour 

4.25 

4.25 

7.50 

25  Lbs.  Sugar 

2.00 

2.00 

2.50 

50  Lbs.  Potatoes 

1.75 

1.80 

2.75 

3  Lbs.  Coffee  G.  G.—  G.  G.  —  MJB 

1.20 

1.20 

1.20 

3  Lbs.  Arbuckies 

.75f 

.75f 

2  Lbs.  Tea 

1.50 

1.50 

1.30 

15  Lbs.  Lard 

2.40 

2.30 

4.40 

5  Lbs.  Fancy  Bacon 

1.75 

2.00 

2.25 

6  Lbs.  Butter 

2.40 

2.70 

2.85 

2  Lbs.  Cheese 

.60 

.60 

.70 

y2-Lb.  Chocolate 

.25 

.25 

.25 

10  Doz.  Eggs 

3.50 

4.50 

5.00 

8  Pkgs.   Breakfast  Cereals 

1.00 

1.00 

1.00 

1  Lb.  Golden  Gate  Baking  Powder 

.35 

.40 

.50 

4  Pkgs.  Macaroni 

.50 

.50 

.60 

8  Pkgs.  Crackers 

.80 

.80 

1.00 

8  Bars  Laundry  Soap 

.40 

.40 

.50 

1  Pkg.  Laundry  Powder 

.25 

.25 

.25 

1   Bottle  Blue 

.15 

.15 

.25 

%    Gal.  L.  C.  Syrup 

.90 

.90 

1.00 

1   Ham,   12  Lbs. 

2.85 

3.00 

3.95 

6  Cans  Table  Fruit 

1.50 

1.50 

1.25 

1    Case     Assorted     Canned 

Vegetables   (24  cans) 

2.90 

2.90 

4.40 

3  Cans  Pork  &  Beans  3  Ib. 

.70 

.70 

1.00 

2  Cans  Pink  Salmon   Vz  Ib. 

.40 

.40 

.40 

5  Lbs.  Rice 

.50 

.50 

.50 

2  Doz.  Milk 

2.20 

2.50 

3.00 

1   Can  Cocoa 

.30 

.30 

.30 

2   Sacks  Salt 

.10 

.15 

It) 

%   Lb.  Pepper 

.10 

.10 

.20 

1   Sack  Corn  Meal  10  Ibs. 

.40 

.40 

.65 

1   Bottle  Extract 

.35 

.35 

.50 

2  Lbs.  Prunes 

.25 

.25 

.40 

1  Lb.  Evap.  Apricots 

.20 

.20 

.30 

2  Jars  Jam 

.70 

.70 

1.00 

1   Bottle  Catsup,  Qt. 

.35 

.35 

.65 

1  Jar  Pickles 

.50 

.50 

.40 

1  Jar  Mustard 

.20 

.20 

.20 

2  Pkgs.  Starch 

.20 

.20 

.20 

3  Bars  Toilet  Soap 

.25 

.25 

.25 

3  Pkgs.  D.  Matches 

.30 

.30 

.25 

1   Qt.  Vinegar 

.40 

.40 

.25 

1   Bottle  Salad  Dressing 

.40 

.40 

.35 

7  Lbs.  Pink  Beans 

.60 

.70 

1.00 

42.60 


44.75 


57.35 


Page  Ten 


Increase  over  1915 
Increase  over  1916 
f  Not  included  in  total. 


FRESH  VEGETABLES: 

12  Heads  Lettuce 
3  Bunches  Turnips 
3  Bunches  Beets 
2  Lbs.  Peas 

2  Lbs,  String  Beans 
6  Lbs.  Tomatoes 

3  Bunches  Green  Onions 


Increase  over  1915 
Increase  over  1916 
FRESH  FRUIT: 

1  Doz.  Oranges    \ 

2  Lbs.    Apricots  J        or  2  do 
8  Lbs.  Peaches     )       Bananas 


Per  Cent  Per  Cent 

5.05          34.62 

28.15 


MEAT: 


Increase  over  1915 
Increase  over  1916 


10  Lbs.  Pot  Roast 
5  Lbs.  Veal 
5  Lbs.  Mutton 
5  Lbs.  Pork 
3  Lbs.  Sausage 


Increase  over  1915 
Decrease  under   1916 
DRY  GOODS: 

1  Pr.  Levi  Strauss  Overalls 
1  Blue  Chambray  Work  Shirt 

1  Heavy  Chambray  Shirt 

2  Pr.  Work  Sox  (Cotton) 

2  Pr.  Cooper  Sox 

1  Pr.  Canvas  Gloves  (Progress 
Mfg.  Co.) 

1  Suit  Heavy  Ribbed  Cotton 

Underwear 
5  Yds.  Gingham 

5  Yds.  Bleached  Muslin 

3  Turkish  Bath  Towels 

6  Yds.  Dark  Calico 
3  Prs.  Ladies'  Hose 

2  Yds.  Cotton  Poplin 

6  Yds.  Unbleached  Muslin 


Increase  over  1915 
Increase  over  1916 


July 

Feb. 

June 

1915 

1916 

1917 

1.00 

1.00 

1.00 

.25 

.25 

.30 

.25 

.25 

.30 

.25 

.25 

25 

.10 

.10 

.25 

.90 

.90 

.75 

.15 

.15 

.15 

2.90 

2.90 

3.00 

Per  Cent 

Per  Cent 

0.00 

3.49 

3.49 

.40 

.40 

.40 

z.__.30 

.30 

.25 

.30 

.30 

.35 

1.00 

1.00 

1.00 

Per  Cent 

Per  Cent 

0.00 

0.00 

0.00 

2.50 

2.50 

2.50 

1.25 

1.75 

1.50 

1.25 

1.50 

1.25 

1.25 

1.50 

1.50 

.60 

.70 

.75 

6.85 

7.95 

7.50 

16.06 

9.49 

6 

5.66 

1.00 

1.25 

1.50 

.50 

.50 

.50 

1.00 

1.00 

1.25 

.25 

.25 

.25 

.50 

.50 

.50 

sSS 

.25 

.25 

.35 

1.00 

1.00 

1.50 

.75 

.85 

1.00 

.50 

.65 

.75 

.75 

.90 

1.00 

.50 

.50 

.75 

1.05 

1.05 

1.35 

.70 

.70 

.80 

.50 

.60 

.75 

9.25  10.00  12.25 

Per  Cent  Per  Cent 

8.11  32.43 

22.50 


Page  Eleven 


BOOTS  &  SHOES: 

1  Pr.  United  Workmen  Shoes 

4.50 

5.00 

5.50 

Per  Cent 

Per  Cent 

Increase    over   1915 

11.11 

22.22 

Increase  over  1916 

10.00 

HARDWARE: 

1  Stewpan    (enamel  ware) 

.60 

.60 

.75 

1  Coffee  Pot 

.75 

.75 

.75 

1  Dish  Pan 

.60 

.60 

.75 

1  Wash  Basin 

.40 

.40 

,50 

1  Drip  Pan 

.20 

.20 

.25 

%  Lb.  Sole  Leather 

.65 

.65 

.75 

Vz  Doz.  Cups  &  Saucers 

.75 

.75 

1.20 

3.95 

3.95 

4.95 

Per  Cent 

Per  Cent 

Increase  over  1915 

0.00 

25.32 

Increase  over  1916 

25.32 

DRUGS: 

1  Jar  (4  oz.)  Cold  Cream 

.25 

.25 

.20 

1  Bot.  (1%  oz.)  La  Sanadora 

.25 

.25 

.25 

1  Bot.  (3  oz.)  Volcanic  Oil 

.25 

.25 

.25 

1  Bot.  (9  oz.)  Scott's  Emulsion 

.50 

.50 

.60 

1  Box  Melba  Face  Powder 

.50 

.50 

.50 

1  Tablet  Writing  Paper 

.15 

.15 

.15 

1.90              1.90  1.95 

Per  Cent  Per  Cent 

Increase  over  1915                           0.00  2.63 

Increase  over  1916  2.63 

FUEL: 

%  Ton  Coal                                    6.50              6.50  6.50 

Per  Cent  Per  Cent 

Increase  over  1915                           0.00  0.00 

Increase  over  1916  0.00 

TOTAL                    $79.45          $83.95  $100.00 

Per  Cent  Per  Cent 

INCREASE  OVER  1915                   5.66  25.87 

INCREASE  OVER  1916  19.12 


Page  Twelve 


It  will  be  seen  from  the  above  that  groceries 
have  advanced  34.62  per  cent  since  1915;  fresh  veg- 
etables 3.49  per  cent;  meat,  9.49  per  cent;  dry  goods, 
and  clothing,  32.43  per  cent;  boots  and  shoes,  22.22 
per  cent;  hardware,  25.32  per  cent;  toilet  articles, 
2.63  per  cent;  while  a  few  articles  such  as  fresh  fruit 
and  coal  have  not  advanced  at  all. 

Taken  together  the  cost  of  this  bill  of  goods  in 
July  1915  would  have  been  $79.45,  and  in  June  1917, 
$100.00  even,  a  total  increase  of  25.87  per  cent. 

Different  articles  may  be  substituted  for  those 
in  the  above  list,  but  when  such  items  under  any  one 
heading  are  added  together  it  will  be  found  that  the 
total  percentage  of  advance  is  approximately  as 
shown. 

While  the  above  bill  of  goods  shows  an  increas- 
ed cost  of  a  little  better  than  25  per  cent,  it  is  not  to  be 
assumed  that  this  figure  reflects  the  average  increas- 
ed cost  of  living,  there  are  many  other  items  which 
should  be  taken  into  consideration. 

It  is  not  out  of  the  way  to  assume  that  50  per 
cent  of  the  cost  of  maintaining  a  family  will  fall  un- 
der the  headings  shown  in  the  above  bill,  leaving 
50  per  cent  for  other  requirements,  such  as  house 
rent,  water,  ice,  lights,  taxes,  books,  papers,  tobacco, 
entertainments,  traveling  expenses,  etc.,  while  a  pro- 
portion is,  or  should  be,  set  aside  for  savings. 

It  is  a  matter  of  common  knowledge  that  few, 
if  any,  of  the  items  in  the  supplementary  list  have  in- 
creased in  cost  during  the  past  two  years;  automo- 
biles, gasoline  and  tires  have  advanced,  no  doubt, 
but  I  am  not  considering  these.  Fresh  milk  has  re- 
cently advanced  121/2  per  cent.  House  rents  in  cer- 
tain cases  which  were  reduced  when  things  slumped 
at  the  time  war  was  declared  in  Europe,  have  been 
restored  to  their  former  level;  in  other  places  no 
changes  have  been  made,  a  few  have  been  raised 
while  on  the  other  hand  a  large  number  of  employees 
own  their  own  homes,  consequently  that  cost  to  them 
has  not  increased.  To  be  safe,  however,  we  will  as- 


Page  Thirteen 


sume  an  average  advance  of  10  per  cent  on  the  sup- 
plementary list. 

If  then  we  take  a  25  per  cent  increase,  as  affect- 
ing 50  per  cent  of  the  wages  received,  and  10  per  cent 
increase  with  respect  to  the  other  half,  the  total  in- 
crease in  the  cost  of  living  works  out  at  17.5  per  cent. 

Coming  now  to  the  question  of  wages  and  the 
ability  to  meet  this  increased  cost  of  living,  I  will  call 
your  attention  to  the  fact  that  in  1915  the  average 
wage  paid  in  this  district  was  $2.72  per  day,  while  the 
average  wage  paid  during  the  first  six  months  of  the 
present  year  was  $4.27  per  day.  Thus  while  the  in- 
creased cost  of  living  to  married  employees  in  this 
district  may  be  taken  at  less  than  20  per  cent,  wages 
have  increased  57  per  cent. 

If  a  similar  comparison  be  made  between  the 
wages  and  the  cost  of  living  this  year  as  compared 
with  the  same  conditions  last  year,  it  will  be  found 
that  the  increase  in  wages  has  slightly  less  than  off- 
set the  increase  in  the  cost  of  living,  thus : 

Average  Wage  March  1916  $3.86 

Average  Wage  January  to  June  1917      4.27 

Increase  10.6  per  cent 
Increased  cost  of  living: 

Fifty  per  cent  at  19.12  per  cent 

Fifty  per  cent  at  10.0  per  cent 

Average      11.4  per  cent 

This  difference  is  equal  to  eighty  cents  upon 
every  one  hundred  dollars  earned  in  wages  in  the 
case  of  the  man  with  family. 

In  the  case  of  unmarried  employees  whose  pro- 
portionate expenditure  on  the  necessities  of  life  is 
much  smaller  than  in  the  case  of  married  employees, 
the  increased  cost  of  living  is  not  so  seriously  felt, 
and  their  increase  in  wages  is  consequently  greater 
in  proportion. 

That  the  average  employee  is  finding  it  possible 
to  save  a  fair  proportion  of  his  earnings  is  reflected 
in  the  increased  amount  of  deposits  in  the  local  banks 

The  following  statement  shows  the  average  total 


Page  Fourteen 


deposits  in  all  banks  in  this  district  for  the  past  three 
years: 

Year  1915  $1,501,675 
Year  1916  1,809,533 
Year  1917  2,406,276 

These  figures  show  an  increase  of  $300,000,  or 
20.50  per  cent  in  1916  over  1915 ;  and  an  increase  of 
$600,000  or  32.98  per  cent  in  1917  over  1916. 

No  figures  can  be  more  persuasive  in  testifying 
to  the  prosperity  of  this  community  and  employees 
generally,  and  would  certainly  indicate  that  present 
wages  provide  a  considerable  margin  even  after  the 
present  high  cost  of  living  is  met. 

The  State  Auditor  reports  the  amount  of  depos- 
its in  all  banks  in  the  state  for  the  past  two  years  to 
be: 

Year  1916  $46,137,360 

Year  1917    60,308,715 

Increase     14,171,355 

This  increase  of  14,000,000  odd  dollars  is  equal 
to  30.7  per  cent  over  the  previous  year,  which  com- 
pares with  an  increase  of  practically  33  per  cent  for 
pur  own  district,  showing  that  pur  people  are  enjoy- 
ing relatively  greater  prosperity  than  their  fellow 
citizens  in  the  state. 

That  this  company  has  not  "hogged  it  all"  and 
has  at  least  returned  to  its  employees  a  fair  share  of 
its  earnings  can  best  be  shown  by  a  statement  of  the 
amount  paid  to  its  shareholders  in  dividends,  in 
terms  of  cents  per  pound  of  copper  produced  during 


Page  Fifteen 


the  past  ten  years,  for  which  purpose  the  following 
statement  is  submitted : 


Year 

Ave.  Price 
Received 
Production  per  Ib.  cu.  Dividends  Pd. 
Lbs.  Copper    Cents  Cts.  per  Ib.  cu. 

1907 

27,404,000 

19.92 

5.48 

1908 

33,942,000 

12.60 

3.07 

1909 

31,962,000 

12.58 

3.26 

1910 

32,210,000 

12,32 

3.23 

1911 

34,584,000 

11.95 

3.01 

1912 

38,132,000 

15.06 

3.45 

1913 

34,226,000 

15.35 

3.31 

1914 

38,756,000 

13.51 

1.97 

1915 

37,330,000 

15.40 

2.49 

1916 

34,100,000 

25.90 

4.59 

Average    34,264,400        15.37  3.32 

From  this  table  it  will  be  seen  that  during  the 
past  ten  years  The  Arizona  Copper  Company  has  re- 
ceived on  an  average  15.37  cents  per  Ib.  for  the  cop- 
per it  produced,  out  of  which  its  shareholders  have 
received  only  3.32  cents  per  Ib.  in  returns. 

The  figures  for  the  Detroit  Copper  Company  are 
not  available,  but  it  is  known  that  the  costs  of  that 
company  are  higher  than  those  of  the  Arizona  Cop- 
per Company. 

In  the  case  of  the  Shannon  Copper  Company  the 
figures  are  still  more  convincing  and  clearly  show 
how  unfair  to  that  company  the  present  wage  de- 
mand is,  the  results  of  their  operations  are  given 
below : 


Pag-e  Sixteen 


Year 

Ave.  Price 
Received 
Production    per  Ib.  cu.  Dividends  Pd. 

Lbs.  Copper 

Cents 

1904 

11,059,909 

L2.516 

1905 

11,295,586 

L4.2476 

1906 

10,970,333 

17.4929 

1907 

13,418,126 

22.3171 

$450,000 

1908 

16,385,290 

13.7275 

1909 

17,553,213 

13.2652 

1910 

17,924,198 

12.9498 

1911 

15,630,090 

12.355 

1912 

16,406,336 

14.8758 

150,000 

§1913 

18,793,724 

15,8696 

150,000 

1914 

9,003,169 

13.6263 

1915 

6,017,642 

17.7994 

1916 

9,364,968 

27.24  41 

150,000 

Total 

173,822,584  Ibs.  cu. 

15.538 

$900,000 

§16  mo.  period. 

From  this  statement  it  will  be  seen  that  for  the 
thirteen  years  during  which  operations  have  been 
carried  on,  the  Shannon  Copper  Company  have  pro- 
duced a  total  of  173,822,584  Ibs.  of  copper,  receiving 
on  an  average  15.538  cents  per  Ib.  for  the  product, 
out  of  which  its  shareholders  have  received  only  six 
tenths  of  one  cent  per  Ib.  in  returns. 

When  it  is  considered  that  the  shareholders  of 
the  Arizona  and  Shannon  Companies  together  num- 
ber nearly  10,000  or  about  twice  the  number  of  em- 
ployees in  the  entire  district,  many  of  whom  are  wage 
earners  like  themselves,  having  invested  their  sav- 
ings against  the  "rainy  day",  and  when  it  is  realized 
that  the  amounts  paid  in  dividends  have  to  be  divid- 
ed among  so  large  a  number,  it  should  be  readily  con- 
ceded that  the  individual  share  holder  has  received 
very  meager,  in  fact  totally  inadequate,  returns 

Norman  Carmichael. 

General  Manager. 
Clifton,  Arizona.  July,  1917. 


